GRAND JURY MOURNS REDEVELOPMENT END

The San Diego County Grand Jury has endorsed the city of San Diego’s 54-year effort at redevelopment, even as it mourned its state-ordered demise.

“The grand jury concluded that the taxpayers of San Diego did, indeed, get value for their property tax dollars in the contributions their redevelopment agency made to the city,” the jury said in its April 30 report.

But the jury noted that the city is left with nearly $2.4 billion in debt tied to numerous ongoing projects, such as Petco Park and the 2001 San Diego Convention Center expansion.

“The grand jury recommends that Mayor Bob Filner personally lead a comprehensive, impactful advocacy effort to assure that the state fulfills this responsibility (to see that debts are paid) and the interests of the city of San Diego are well represented,” the jury said.

The state ordered the dissolution of more than 400 redevelopment agencies last year as a way to reduce the state’s budget deficit by a projected $1.8 billion. The money was returned largely to school districts, and relieved the state of filling the gap left by diverted taxes for redevelopment.

The state currently reviews post-redevelopment spending to cover certain debt obligations and can override items it deems disqualified. About $13 million in convention center and ballpark bond payments are examples of disallowed payments. The city general fund has had to make up the difference.

The 19-member jury investigated the city’s redevelopment record in its role as a government watchdog, looking for ways to make agencies more efficient and effective. Once they issue their reports, agencies have 90 days to respond to recommendations.

The grand jury took note of many redevelopment projects that it said successfully reduced blight and advanced economic development downtown and in many suburban neighborhoods. It cited as examples Horton Plaza shopping center, the new Central Library, now nearing completion, affordable housing, City Heights Urban Village, the Naval Training Center’s conversion to Liberty Station and the North Park Theatre.

“Redevelopment in San Diego is unfinished business. Literally!” said the jury’s report, released Tuesday. “When San Diego’s redevelopment agency was dissolved, many projects that were under way were left unfinished.”

The jury recommended that Civic San Diego — which was set up to wind down redevelopment — form a specialized work group to find new funding sources for those unfinished projects.

The jury did not discuss the views of many redevelopment critics, who objected to using eminent domain to acquire sites and concentrating redevelopment funds on downtown projects rather than sharing them with other redevelopment project areas.

Instead, the jury recommended the city survey other states to see what alternate redevelopment concepts might be applied locally.